A Sino-foreign co-production, simply put, is a contractual arrangement between a foreign party and a Chinese party to conduct filming in China. There may be multiple parties on each side, provided that the Chinese party/parties must be production entity/entities accredited by the State Administration of Radio, Film and Television (SARFT) (for details, see “Structuring a Sino-foreign co-production”). For purposes of Sino-foreign co-production, investors or producers from the Hong Kong and Macao Special Administration Regions and the territory of Taiwan are considered as overseas parties.

Relationship of the parties.

The parties to a Sino-foreign co-production organize and conduct affairs of the co-production, including division of rights and obligations, in accordance with the co-production agreement entered into between them. The parties do not set up a separate entity for purposes of the co-production.

Approval.

All Sino-foreign co-productions must obtain the approval granted by the SARFT before any filming activity commences, and when the film is completed (that is, the censorship approval). Every co-production project can only be directed at producing and shooting one film, and a separate application is required for each project. The approvals are granted on a case-by-case basis depending on the relevant authority’s review of, among other things, the screenplay and the completed film. The regulatory regime captures all film genres and all formats in which filming will be conducted.

Governing authority.

The governing authority for Sino-foreign co-production is the SARFT, in particular, the Film Bureau of the SARFT. Nevertheless, the SARFT has appointed China Film Co-production Corporation (CFCC) as its sole agent to assist in managing and coordinating the applications, conducting preliminary review of the screenplay and completed film, and other logistical matters relating to Sino-foreign co-productions.

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